Diodes Incorporated (DIOD)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,652,820	1,998,010	1,795,390	1,207,620	1,261,930
Property, plant and equipment	US$ in thousands	746,169	736,730	582,079	530,815	469,574
Fixed asset turnover		2.22	2.71	3.08	2.28	2.69

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,652,820K ÷ $746,169K
= 2.22

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is more efficient in utilizing its fixed assets to generate sales.

Analyzing Diodes, Inc.'s fixed asset turnover over the past five years, we observe a fluctuating trend. In 2021, the ratio was at its peak of 3.10, signifying that the company generated $3.10 in sales for every $1 invested in fixed assets. This suggests highly efficient asset utilization during that year.

However, in 2020 and 2019, the fixed asset turnover decreased to 2.32 and 2.66 respectively, indicating a decline in efficiency in utilizing fixed assets to generate revenue during those years.

In 2022 and 2023, the ratio improved to 2.72 and 2.23 respectively compared to the previous years. While the ratio in 2023 decreased compared to 2022, it still indicates a relatively efficient use of fixed assets to generate sales.

Overall, the trend in Diodes, Inc.'s fixed asset turnover ratio reflects fluctuations in the company's efficiency in generating revenue from its fixed assets over the past five years. It would be important to further investigate the reasons behind these fluctuations to understand the company's asset management strategies and operational performance.